FinCEN lists cryptocurrency as a top priority for AML and CFT

The financial crime law enforcement network in the United States will continue to pay close attention to the cryptocurrency industry as one of its top tasks in combating crimes such as money laundering.

FinCEN official Announce On Thursday, “virtual currency considerations” or operations involving cryptocurrencies such as Bitcoin (Bitcoin), will become one of the national priorities in combating terrorist financing and ensuring appropriate anti-money laundering policies.

The regulator stated that “the establishment of these priorities is to help all relevant agencies work hard to fulfill their obligations under relevant laws and regulations.” FinCEN elaborated that it will soon issue regulations to specify how financial institutions should incorporate these priorities into their anti-money laundering plans.

“FinCEN recognizes that not every priority is related to every covered agency, but every covered agency should review and incorporate each priority as appropriate from the date when future regulations related to these priorities become effective. Matters. A broader risk-based AML program,” the agency pointed out.

FinCEN refers to cryptocurrency as “convertible virtual currency” or CVC, pointing out that such assets have become “the currency of choice in various online illegal activities.” The authorities then detailed the CVC widely used by criminals, believing that it is the “preferred payment method” for purchasing illegal products such as ransomware tools and even promoting activities such as “nuclear ambitions”.

“For example, since 2019, network actors associated with North Korea may have stolen hundreds of millions of dollars worth of CVC through network operations against CVC service providers, and laundered the value of the stolen CVC through other CVC service providers and CVC wallets. And use the proceeds to help fund weapons of mass destruction and ballistic missile programs,” FinCEN wrote.

related: Former Chainalysis Brass is now acting director of FinCEN

This news is consistent with the recent remarks made by Brian Nelson, the Undersecretary of Terrorism and Financial Intelligence at the Ministry of Finance.At the Senate hearing at the end of June, Nelson announced that he would Push for implementation The 2020 Anti-Money Laundering Law includes some “new regulations on cryptocurrencies.”

A few months after President Joe Biden, FinCEN’s attention to the crypto industry is increasing Freeze FinCEN supported rules Monitoring cryptocurrencies on self-custodial wallets is one of the first actions taken by the president in office.authority Launch the proposal at the end of 2020 Under the leadership of the former US Treasury Secretary Mnuchin, it is planned to require all banks and currency companies to submit reports and verify the identities of customers participating in crypto wallet transactions.